I downloaded the HALP rules on short sales this afternoon, late, thinking maybe I could read, digest, and post.  Nope. Not gonna happen.

The feds are telling lenders to pay owners up to $1500 in moving costs if they participate in a program whereby servicers/lenders agree to a reduced price in advance for the short sale to occur.

For example, say a house sold in 2006 for $300,000 with a loan of $280,000, but the house is now worth a lot less--say, $275,000. The lender agrees to a short sale for $270,000, agreeing to take a $10k writedown on the $280k loan.

 The property is listed (and hopefully sold) for the $270,000. Lender and owner walk away, owner to receive $1500 to hit the road. Lender agrees not to pursue a deficiency judgment.

The devil, as always,  is in the details, so  need more time to not just give the answers, but to figure out all the questions. Such as, what if there's a HELOC.

But it appears as though there's a good move in the right direction. More tomorrow.